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Definition

Revenue expenditure

Revenue expenditure is an expenditure which is periodically incurred to maintain the revenue the revenue-earning capacity of the business, e.g.,

  • Expenditure incurred to maintain the value of any existing asset, e.g., ordinary repairs. Whitewashing of the building, etc.
  • Expenditure incurred in the ordinary conduct and administration of the business, i.e., tent, salaries, wages, etc.
  • Expenditure incurred in connection with the administration and distribution of the goods manufactured or sold, e.g., commission, travelling expense, advertising and so on.
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